A new year arrives and very surely with him some debts that were pending from the previous one. Therefore, we recommend you to be much more cautious when spending in these first three months (January, February and March) so as not to make things worse and to be able to have a healthier financial life in 2018 that is already very close.
Payday loans, debts to services, friends to whom you owe money,
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Among many other factors, may be those who at this time take away your sleep, taking into account the time of the year in which we are, as December is one of the months where more money flows in and out of bank accounts or out of pocket, since as well as the payroll along with the famous cousin, so goes, in the blink of an eye.
Before starting to give you a solution, it is important that you remember when was the last time you took stock of your finances. The reason why this question is necessary is related to the simple fact that almost 80% of people do not keep track of what they owe or what they have or what they have achieved, but it is not that they do not have the interest To do so, they have not taken the habit of doing the judicious task because they think they may become too interested in money or even stingy.
However, this is only a myth, because if you organize and manage to plan your money management concretely, all you will achieve are excellent results: meet all your goals during the year, save a considerable amount of money and even be able to invest in a business that can generate profitability. But best of all, you won’t have to be worried about borrowing even more, with losses that mean your assets or that prevent you from applying for financial services such as Payday loans.
Surely you will be wondering what will be the most effective way to get a budget that allows you to have control of each of your personal finances, so below you will find a series of tips that can help you with this work and not die trying . It will work perfectly as long as you don’t forget to respect it and comply to the letter.
What is budget all about?
Let us define, then, what a budget is about, since it is only a safe and effective way to classify the money you receive monthly or biweekly, dividing it into income and expenses so that you can decide on its administration and on what It should be reversed. Now, to start, you only need a pencil and paper, if you want to do it in the old way, a cell phone or a computer where you can generate an Excel with the most important information. Then you can do it almost automatically.
Decide: Without a doubt, the first step for anything is to make the decision to do it and have the will to comply with the agreement that you will undertake, because in the end no one but you can fulfill it. In the same way it is necessary to extend a congratulation, because if you are now reading this article it is because you are interestedly looking for a way to start correctly enjoying your financial life.
How much you have: Start by making a list of all the financial products or services you have to date (credit cards, Payday loans, educational loans, free investment or mortgages, etc.) and what is the income you receive each month. Do not forget to have the interest rates charged and write down the expenses per product and the additional ones you have during the month.
How much you earn: If you receive your salary monthly it will be easier to budget, but if you have a fee payment or independently, it is more complicated because it would constantly change the flow of money. If this is your case, it is most recommended that you consider the average of your recurring income for the last six months, take the minimum amount you can receive during the month so you have the option of having a “drawer” in case an emergency arises or additional expense.
How much you owe: Should you always borrow or reach the maximum advance of your card because the money does not pay? If so, make a list of all your lenders and how much you owe each. If you are paying any credit it is important that you include it and if you are delinquent, you can also count on this value, so you can have a clear total of what you owe so that you can dissolve all your debts.
Where do your income go: Now that you know how much the total value of what you owe is it is time to calculate from your income what is the amount you are spending in the month and very often. For this, save your invoices and make categories depending on the type of expense, they can be from the most general to the most specific, as you consider best. Some categories can be: services, leasing, food, children, transportation, among many more.
What is your net worth : This is a really simple step, you just have to go back to the steps you did before, take the total value of your income and reduce the total expenses. You can get positive or negative results. In case they are favorable, you can direct the result towards saving completely or one part for entertainment and another for savings. In case your result is unfavorable, do not be discouraged and take it as an opportunity to get out of debt.
Constant follow-up: The results can be seen in the long term if you do it in a disciplined way, since controlling your finances and recording them takes only a few minutes. This task must be done monthly, not only is to include your expenses or income but you must make intelligent decisions based on what is reflected in your budget for an effective administration of your money.
Control will give you peace of mind: There is nothing better than living without a drop of stress, because it is more than enough with what can cause daily work or personal problems. Having financial peace of mind will certainly take a weight off of you.
Now that you have 8 key points to start making your budget, do not forget that the most important thing is to know how much is your family income, total expenses (credit cards, Payday loans, educational credits, etc.) to find your remaining money, which you can invest in whatever you want.